We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tesla Misses Q2 Delivery Target, Focuses on Raising Output
Read MoreHide Full Article
Tesla Motors, Inc. (TSLA - Free Report) delivered 9,745 Model S and 4,625 Model X vehicles in the second quarter of 2016. The total of 14,370 vehicles delivered during the quarter is significantly lower than its projection of 17,000 vehicle deliveries as well as 14,810 units delivered in the first quarter of 2016.
The shortfall in deliveries resulted from low production levels at the beginning of the second quarter. Tesla is striving to increase its production capacity. The automaker produced 18,345 vehicles in the second quarter, which represents a 20% increase over the first quarter.
Production volume had increased to almost 2,000 vehicles per week by the end of the second quarter. However, many of these vehicles could not be delivered during the quarter. Nearly 5,150 vehicles were in transit to customers at quarter end. These vehicles will be delivered in the third quarter.
Tesla plans to increase its production capacity to 2,200 vehicles per week in the third quarter and 2,400 vehicles per week in the fourth quarter. As a result, the company expects to produce nearly 50,000 vehicles in the second half of 2016.
We note that this is the second quarter in which Tesla missed its deliveries guidance. The electric carmaker delivered 14,810 cars in the first quarter of 2016, significantly lower than its projection of 16,000 vehicle deliveries.
Meanwhile, Tesla stated that there might be a marginal revision (less than 1%) in the first-quarter delivery figure as it counts a delivery only after the vehicle is handed over to the end customer and the paperwork is accurate. The company further clarified that its quarterly financial results do not depend solely on vehicle deliveries, but also on other factors such as cost of sales, foreign exchange movements and mix of directly leased vehicles.
Tesla started reporting its quarterly vehicle delivery data from the first quarter of 2015 in order to dispel incorrect estimates usually made using erroneous information sources. The electric carmaker now reports its vehicle delivery volume within three days of every quarter end.
Tesla currently carries a Zacks Rank #4 (Sell). Some better-ranked automobile stocks include Commercial Vehicle Group Inc. (CVGI - Free Report) , Spartan Motors Inc. , and Visteon Corporation (VC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Tesla Misses Q2 Delivery Target, Focuses on Raising Output
Tesla Motors, Inc. (TSLA - Free Report) delivered 9,745 Model S and 4,625 Model X vehicles in the second quarter of 2016. The total of 14,370 vehicles delivered during the quarter is significantly lower than its projection of 17,000 vehicle deliveries as well as 14,810 units delivered in the first quarter of 2016.
The shortfall in deliveries resulted from low production levels at the beginning of the second quarter. Tesla is striving to increase its production capacity. The automaker produced 18,345 vehicles in the second quarter, which represents a 20% increase over the first quarter.
Production volume had increased to almost 2,000 vehicles per week by the end of the second quarter. However, many of these vehicles could not be delivered during the quarter. Nearly 5,150 vehicles were in transit to customers at quarter end. These vehicles will be delivered in the third quarter.
Tesla plans to increase its production capacity to 2,200 vehicles per week in the third quarter and 2,400 vehicles per week in the fourth quarter. As a result, the company expects to produce nearly 50,000 vehicles in the second half of 2016.
We note that this is the second quarter in which Tesla missed its deliveries guidance. The electric carmaker delivered 14,810 cars in the first quarter of 2016, significantly lower than its projection of 16,000 vehicle deliveries.
Meanwhile, Tesla stated that there might be a marginal revision (less than 1%) in the first-quarter delivery figure as it counts a delivery only after the vehicle is handed over to the end customer and the paperwork is accurate. The company further clarified that its quarterly financial results do not depend solely on vehicle deliveries, but also on other factors such as cost of sales, foreign exchange movements and mix of directly leased vehicles.
Tesla started reporting its quarterly vehicle delivery data from the first quarter of 2015 in order to dispel incorrect estimates usually made using erroneous information sources. The electric carmaker now reports its vehicle delivery volume within three days of every quarter end.
TESLA MOTORS Price
TESLA MOTORS Price | TESLA MOTORS Quote
Tesla currently carries a Zacks Rank #4 (Sell). Some better-ranked automobile stocks include Commercial Vehicle Group Inc. (CVGI - Free Report) , Spartan Motors Inc. , and Visteon Corporation (VC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>